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Adriana Corporation manufactures football equipment in planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the
Adriana Corporation manufactures football equipment in planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine hours, or both The following data were collected from last year's operations. Month 1 2 3 4 5 6 7 8 9 le 11 12 Labor-Hours 3,625 3,575 3,400 3,700 3,900 3,775 3,700 3,625 3,550 3,975 3,375 3,550 Machine Hours 6,775 7,035 7,600 7,265 7,955 7,895 6,950 6,530 7,270 7,725 6,490 8, eze overhead costs 5513,435 518,960 549,575 541,400 581,145 572,320 535, 110 510,470 532,195 565,335 503,775 564,218 Required: Prepare a scattergraph based on the overhead and machine hour data 1. Click on a polnt to the right of the graph. 2. Click within the graph to place the point. 3. Enter the exact coordinates in the dialog box that appears to the right of the graph. 4. Click Save. 5. To change coordinates already saved, click on a point already placed in the graph, and enter revised coordinates in the dialog box that opens. Methods of Estimating Costs-Scattergraph Adriana Corporation O Tools Month 1 582500 577000 571500 566000 560500 555000 $29500 84000 908500 $33000 $27500 522000 516500 511000 505500 500000 Month 2 Month 3 6306508708909108309508709908109308500
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